Individual Retirement Accounts (IRAs)
A wise choice and great addition to any retirement saving strategy. Whether opening a new IRA, or rolling over from another plan, FMFCU has a retirement account that will fit your needs.
IRA Accounts Feature:
- No set-up or annual maintenance fees
- $5 minimum to open
- Convenient deposits through payroll deduction and Online Banking
- IRA Certificates with terms from 3 months to 5 years
- Variable rate IRAs with no term
- Competitive rates
- IRAs are insured up to $250,000 by the National Credit Union Administration (NCUA)
- Available as a Bump Certificate product
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Learn About IRAs
IRAs are one of the best retirement savings tools available today because of the federal tax benefits available on contributions, withdrawals, and earnings. As an IRA grows, these tax advantages can result in significantly larger savings than what can be accumulated in an ordinary savings tool. More people than ever are benefitting from the tax advantages available through IRAs.
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Traditional IRAs
- Contributions are tax-deductible for many taxpayers.
- Earnings are tax-deferred until they are distributed.
- Withdrawals are taxed as income.
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Roth IRAs
- Contributions are non-deductable will not be subjected to future taxes.
- Earnings grow tax-deferred.
- Withdrawals are tax-free when all requirements have been met.
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Coverdell Education Savings Accounts
- Contributions are not tax-deductible.
- Earnings are tax-deferred until they are distributed.
- Distributions are tax-free if used to pay for the account beneficiary’s qualified expenses for costs of kindergarten through 12th grade, college or trade school.
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IRA Information for 2018
- Contributions for 2018 may be made up until 4/17/2019.
- e-Banking contributions are always recorded as Current Year.
- The IRA contribution limit for 2018 is $5,500; $6,500 if you are 50 or older.
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IRA Rollover Rule Change
Effective January 1, 2015, once an IRA owner completes one IRA to IRA Rollover, any subsequent attempts to complete a Rollover will not be allowed for 12 months. If subsequent IRA Funds are removed, it will be reported as a taxable distribution. For additional information, visit the IRS article here.